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How to use a financial goal planner for long-term success?

financial goals planner
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Setting goals is an important aspect of financial planning. Achieving targets can be much easier if you have a roadmap for the journey ahead, and you know what to expect along the way. Thus, proper financial goal planning can ensure that your resources are invested in a way that helps you achieve your ultimate objectives within the stipulated timeframe.

  • Table of contents
  1. Let’s understand financial goal calculators
  2. Benefits of using a financial goal calculator
  3. Selecting the right financial goal plan to ensure sustained success
  4. FAQ

Let’s understand financial goal calculators

Every financial objective, including debt repayment, college financing, retirement planning etc., must be planned while accounting for inflation and taxes. By calculating how much money you need for your goal, financial goal calculators assist you in making plans for your future financial requirements. Their approach is based on the notion of future value, which considers variables like projected investment returns and inflation.

Here's how you can use a financial goal calculator:

  • Enter the information: To begin, input a few essential details into the calculator, like:
    • Your current financial goal amount.
    • The time frame in which you need the money.
    • The expected rate of inflation (how prices are expected to increase over time).
    • The expected rate of return on your investments.
  • Calculate the future value: The calculator estimates the future worth of your financial goal using a formula. The formula considers:
    • Present value (the current amount you have).
    • Rate of return (how much your investments are expected to grow).
    • Duration (how long until you need the money).
  • Determine the funds needed: The calculator can assist you in figuring out how much you must consistently invest to meet your objective. It considers:
    • The future value of your goal.
    • Your current savings.
    • The expected rate of return on your investments.
    • The time frame until your goal.

Benefits of using a financial goal calculator

To reach a goal, you must first know what you want to achieve and how much it costs. Once the goals have been set, it is easier to define the kind of investment strategy you need to meet your targets.

Here are the benefits of using a financial goals calculator:

  • Tells you the amount you need: Having a specific financial goal and its timeframe will give you a fair idea of the funds you need to achieve it. For example, if you want to plan for your child’s higher education, a goals-based calculator will help you factor in inflation, which will have a significant impact on educational costs when your ward is ready to pursue higher studies. A tuition fee of Rs. 15 lakhs today is likely to be double in 10 years.
  • Helps you identify the right investment instruments: Knowing how much you want for a specific need is key to building a sound investment strategy. You can choose from various asset classes such as equity, debt, gold depending on your investment horizon and financial goals. Debt funds and fixed deposits can be suitable for meeting short-term goals. For medium-term goals, a mix of equity and debt is recommended. If you have a long investment horizon (over 10 years), hybrid funds can be suitable as they may offer a cushion against volatility.
  • Enables efficient portfolio structuring: Constantly monitoring and reviewing your portfolio is crucial once you have decided on a goal. Knowing how much money you need to meet a goal and the timeframe within which it is required can help you arrive at the right asset allocation strategy.
  • Helps you stay disciplined: Knowing how much you need to invest every month to meet a goal can help you cut down on unnecessary expenditure. Since you know that any extra spending can stall you in the pursuit of your goal, you are more likely to be more watchful in all your other financial dealings.

Selecting the right financial goal plan to ensure sustained success

Goal plans are classified into three types:

  • Short-term (1-3 years): Short-term plans are those that you want to achieve within one to three years. These could include saving for an upcoming vacation or creating an emergency fund to cover unexpected expenses.
  • Medium-term(5-10 years): Medium-term plans typically have a slightly longer timeframe but are still within reach. For example, you could set a goal to purchase a car within the next few years.
  • Long-term goals (10+ years): Long-term plans are those that take a long time to achieve and typically span a decade or more. This could include planning for retirement or purchasing a home.


Achieving long-term financial success requires a robust plan using a financial goal planner. People can design customised plans that fit their priorities by defining goals precisely. One must also be aware of the financial obligations involved and set reasonable deadlines. Calculators for financial goals make this procedure even easier by revealing the details of required investment and savings strategies. By starting today and sticking to your financial plan, you can consistently move towards meeting your objectives and attaining financial independence.


What are financial objectives and what makes them crucial?
Financial goals are essential objectives that help people prioritize saving, investing, and spending to achieve financial independence and stability.

How can I determine my financial goals?
Establish goals by figuring out what the purpose is, estimating how much is needed, and establishing reasonable deadlines that are in line with your values.

How do financial goal calculators’ function?
These tools help with goal feasibility assessment by estimating savings and investment needs depending on variables like inflation and investment returns.

How do I pick the best plan for my financial goals?
Choose your plans according to the duration of your goals: short-term for travel, medium-term for schooling, and long-term for retirement.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.